Gross Domestic Product (GDP) fell by 7.0% in Quarter 1 (Q1) 2026. (See Editor’s Note below).
Multinational-dominated sectors contracted by 7.5% in Q1 2026 while Domestic sectors expanded by 0.1%.
Total Exports decreased by 8.4% in Q1 2026 (-€18.8 billion), while total Imports rose by 2.4% (+€4.0 billion).
Modified Domestic Demand (MDD), a broad measure of underlying domestic activity that covers personal, government, and investment spending, grew by 0.3% in Q1 2026.
Personal spending on goods and services, a key measure of domestic economic activity, grew by 0.8% in Q1 2026.
The Balance of Payments Current Account recorded a surplus of €17.9 billion in transactions with the rest of the world in Q1 2026.
The updated estimated GDP figure for Q1 2026 is -7.0%. This compares with a Quarterly National Accounts Q1 2026 Provisional of -12.1% published on 04 June 2026. Today’s release includes new information including data published today in the Annual National Accounts 2025 (ANA2025) including annual microdata files for 2024 and annual revisions to Balance of Payments surveys.
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Statistician's Comment
The Central Statistics Office (CSO) has today (02 July 2026) published Quarterly National Accounts and International Accounts results for Quarter 1 (Q1) 2026, following on from the Quarterly National Accounts Quarter 1 2026 Provisional issued on 04 June 2026 (See Editor’s Note below).
Summary Results
Assistant Director General with responsibility for National Accounts & Price Statistics, Chris Sibley, said:
“In today’s release, Gross Domestic Product (GDP) is estimated to have fallen by 7.0% in January, February, and March (Q1) 2026.
The globalised Industry sector contracted by 12.0% in Q1 2026 compared with Q4 2025 while the Information & Communication sector posted a decrease of 2.0% over the same period. Overall, the multinational-dominated sector fell by 7.5% in the quarter.
However, there was continued growth in the domestic economy in Q1 2026. Modified Domestic Demand (MDD) grew by 0.3% in the quarter driven by personal spending which increased by 0.8%.”
Domestic Economy as measured by GDP
Looking at the results in more detail, National Accounts Statistician Justin Flannery said:
“Overall, the sectors focused on the domestic market expanded by 0.1% in Q1 2026. The Professional, Administrative & Support sector grew by 1.0% while the Real Estate Activities sector was largely flat. All other sectors posted contractions including Arts & Entertainment (-6.2%) and Construction (-4.3%).
Expenditure in the Economy
Looking at expenditure in the economy, exports declined by 8.4% in Q1 2026 while Imports rose by 2.4% over the same period. As a result, net exports decreased by 37.4% or 22.8bn in the quarter. Capital Investment rose by 27.0% or €7.9bn compared with Q4 2025 reflecting an increase in the value of physical changes in stocks. Personal spending on goods and services increased by 0.8% in Q1 2026, while Government spending on goods and services was up 0.3% over the same period.
Impact of Globalisation Activities and the Indicators of Underlying Domestic Activity
Final Domestic Demand (FDD), a measure of personal, government, and investment spending, increased by 0.2% in Q1 2026. Modified Domestic Demand, a broad measure of underlying domestic demand that excludes IPP and aircraft-related globalisation effects, rose by 0.3% in the quarter.
Compensation of Employees
Compensation of Employees (CoE), which includes wages as well other payments such as bonuses and allowances, decreased by 2.3% in Q1 2026 compared with Q4 2025.
GDP and GNP results
Overall, GDP is estimated to have fallen by 7.0% in Q1 2026. Gross National Product (GNP), a measure of economic activity that excludes the profits of multinationals, was up by 6.8% in the quarter, reflecting a 48.4% fall in factor income outflows.”